Metal Building Deal. Who needs some shop space?

[Cole Bigbee]

Investment Info:

Industrial commercial investment investment in Tuscumbia.

Purchase price: $100,000
Cash invested: $17,000

This is small building shop that was previously owned by an equipment rental company. The building has 900sqft of office and 1500sqft of shop space with a 1/4 acre of fenced in gravel yard.

What made you interested in investing in this type of deal?

This was my third commercial property to purchase and its size, location, and reasonable asking price drew me to this property.

How did you find this deal and how did you negotiate it?

I live right down the road from this property and travel by the location daily. The commercial agent representing the property was located an hour away, as the owner they were representing had many locations across the southeast and this property was thrown to them. I could tell it was inconvenient for him to come show the property and they were willing to take any offer to the owner in order to get this out of their hair! The initial ask was 125K and were able to settle at 100k.

How did you finance this deal?

Traditional bank financing.

How did you add value to the deal?

We re-sheeted and insulated the shop walls and gave the building a good cleaning!

What was the outcome?

The metal building erector I used to do some of the work wanted to lease the building immediately once his work was completed. I also found out that it was in a location where billboards are allowed, so I did a land lease to a billboard company to place a sign behind the building.

Lessons learned? Challenges?

Just because a real estate company has a sign in the yard, doesn't mean you can't get a good deal. You never know what the situation of the owner/owners are and it is free to look!